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Facebook Inc (FB) Will Find Difficult To Compete With Google Inc (GOOGL) In Search Business

Google Inc (NASDAQ:GOOGL) has in the recent years been diversifying its operations amidst concerns that the search business could come under immense pressure in terms of competition in the years to come. The search giant has been investing a great deal in the wireless business, the driverless car technology, as well as the lucrative advertising business as one of the ways of reducing its reliance on its core business. Facebook Inc (NASDAQ:FB) is the latest company to show interest in dethroning Google as the apex of the search business, reports CNBC’s Melissa Lee.

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The giant social network has already confirmed plans to unveil a search engine app that will make it easier for users to add links to posts. CNBC’s Contributor Dan Nathan believes Google Inc (NASDAQ:GOOGL) will have to worry a bit, on Facebook tapping into a space it has dominated for years amidst little or no opposition.

However, Google still looks set to dominate the space as searches on Facebook Inc (NASDAQ:FB) will be limited to what happens on the platform. Timothy Seymour believes Google still offers a lot more value as a search company, unlike Facebook that is only getting started.

“I think Google has had a small bit of erosion on search but when I look at the value, here again, I think when I look at Google vs. Facebook, and I look at the video ads market. [..] I think these guys are both well positioned but Google offers a lot more value here,” said Mr. Seymour.

Just like Seymour, Steve Grasso affirms it may be too early to judge Facebook as a search engine play at the expense of Google, which continues to dominate the space with 64% market reach. “No one is going to go to Facebook Inc (NASDAQ:FB) unless it is a really specific search,” said Mr. Grasso.

The fact that the Facebook Inc (NASDAQ:FB) search engine app will be used for searching things like links on the platform should have an impact on the engagement levels on the platform according to Pete Najarian. Facebook has been looking for ways to keep people more engaged on the network so that they can spend more time, something it looks set to achieve with the new app.

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